2020 Mercedes-benz C-class C 300 on 2040-cars

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Automakers face reality of EVs' cost — to jobs, and their bottom line

Related: We obsessively covered the Frankfurt Motor Show — here's our complete coverage FRANKFURT, Germany — European car bosses gathering for the Frankfurt auto show are beginning to address the realities of mass vehicle electrification, and its consequences for jobs and profit, their minds focused by government pledges to outlaw the combustion engine. As the latest such announcement by China added momentum to a push for zero-emissions motoring, Daimler, Volkswagen and PSA Group gave details about their electric programs that could give policymakers some pause. Planned electric Mercedes models will initially be just half as profitable as conventional alternatives, Daimler warned — forcing the group to find savings by outsourcing more component manufacturing, which may in turn threaten German jobs. "In-house production is almost irrelevant to the consumer," Daimler boss Dieter Zetsche told reporters on the eve of the Frankfurt Motor Show, in the midst of a German election campaign in which automotive jobs have loomed large. The company set a target of saving 4 billion euros ($4.8 billion) by 2025 to help fund the cost of its electric cars. "Daimler is the first company to state explicitly how much electric vehicles are going to hurt margins," said Bernstein analyst Max Warburton. "It was brave to go first — but of course it won't be the last." Volkswagen, for its part, said it was seeking new global supplier contracts to source 50 billion euros ($60 billion) of electric car content including batteries, which are not yet manufactured competitively in Europe. "A company like Volkswagen must lead, not follow," Chief Executive Matthias Mueller told reporters. VW diesel emissions-cheating exposed by U.S. regulators in 2015 triggered global public outrage, dozens more investigations into test-rigging by the wider industry and a push by some lawmakers to ban diesel and eventually all engines. TIGHTENING NOOSE Tesla shares jumped nearly 6 percent on Monday after a Chinese minister said it was a question of when, not if, Beijing bans fossil-fuel cars, tightening the noose around the combustion engine. France and Britain have promised its outright abolition by 2040. But PSA, the maker of Peugeots and Citroens, said it was concerned about the risks if consumers were left behind in the rush, and a new generation of battery cars does not sell.

Max Verstappen wins rain-soaked German Grand Prix

HOCKENHEIM, Germany — Max Verstappen won a chaotic and rain-soaked German Grand Prix on Sunday as championship leader Lewis Hamilton finished 11th and his Mercedes teammate Valtteri Bottas crashed near the end. Verstappen kept his composure on a treacherous track to clinch his second victory this season and seventh of his Red Bull career, topping a surprise podium ahead of Ferrari's Sebastian Vettel — who started from last — and Toro Rosso driver Daniil Kvyat. "It was amazing to win, it was really tricky out there, you had to be focused," Verstappen said. "It was about trying to not make too many mistakes. You learn over the years. I'm very happy with the result." Following this week's crushing heatwave, wet weather caused Hockenheimring havoc as drivers took up to six pit stops for new tires and several crashed at the same spot where a section of tarmac was notoriously slippery. Ferrari driver Charles Leclerc was in contention for a podium, despite starting from 10th, but crashed after switching for quicker tires and slid off the track, over the gravel and into the barriers. Remarkably, Hamilton had the same mishap moments later, mangling his front wing after losing control at the same corner. He came in for a new wing and tires, but it took Mercedes by surprise and a painfully long stop cost him any chance of victory. For Vettel it was a remarkable turnaround, and almost the opposite to last year — when he crashed near the end after leading the race from pole position and Hamilton won, having qualified only 14th. "It was a lot of fun, it was very tough to read what the smartest move was in the conditions," Vettel said. "I stayed tidy in the whole race. Congratulations to Max, he was superb." The red-clothed Ferrari mechanics and engineers mobbed the four-time F1 champion, doubtless relieved after the team's botched qualifying on Saturday. Vettel could not even get out on track to set a time and Leclerc's qualifying bid was undone late in the session, forcing him to start 10th. For Kvyat it was a third career podium but, above all, a point proved. The 25-year-old Russian driver was ruthlessly replaced at Red Bull by Verstappen after just four races of the 2016 season, and could not even get a seat in F1 last year. "Amazing to be back on the podium," Kvyat said. "The race was crazy. Incredible roller-coaster, like my whole career." The track was drenched by the time the race started. For safety reasons, a safety car was deployed.

Brabus 850 6.0 Biturbo Coupe is an extroverted, 217-mph Mercedes S63 AMG

The Mercedes-Benz S-Class is a prime example of handsome, restrained design. It's classy but not shouty, stylish without trying too hard. Of course, Brabus can address that um, problem, for you, without much issue. Meet the Brabus 850 6.0 Biturbo Coupe, an extensively modified version of the S63 AMG Coupe. Larger intakes and lots of carbon fiber typify the front end, while the tail sports a new diffuser and rear spoiler, both of which are finished in carbon fiber. Meanwhile, Brabus is offering a variety of wheel designs, ranging in size from 18 to 22 inches, and with the customer's choice of Continental, Pirelli and Yokohama rubber. The most questionable changes, though, happen in the cabin, where black Mastik leather is finished with copper stitching and piping. Brabus then takes 219 different interior trim pieces and lines them in Shadow Gold paint, just like the Monoblock wheels featured on the vehicle above. Of course, Brabus does much, much more than just offer its own take on the normally conservative Mercedes aesthetics. There's a bit of tweaking to the powertrain. Despite the "6.0" in its name, the donor S63 AMG's 5.5-liter, biturbocharged V8 has been enlarged to just over 5.9 liters (5,912 cc, to be precise), thanks to a larger cylinder bore and a longer stroke, the latter of which comes from a Brabus-spec crankshaft. While Brabus may be exaggerating about the size of its new coupe's engine, the tuning firm is not overstating said powerplant's output. A stout 850 horsepower is teamed with an electronically limited 848 pound-feet of torque. There's more to this modded Mercedes than that, though, as Brabus claims the 5.9-liter is actually capable of turning out a silly 1,069 lb-ft, but that it needed to be limited "in the interest of the longevity of the entire powertrain." All this extra oomph comes from a pair of "special" Brabus turbochargers, as well as new exhaust manifolds and a stainless steel exhaust system. A new intake module also helps breathing, while the engine's ECU has been updated for extra performance. Aside from a new set of paddle shifters, the S63 AMG's seven-speed gearbox was left unaltered, as was the 4Matic all-wheel-drive system. Oh, and if you live in Europe and really want to scare yourself, Brabus will offer the same engine treatment to the rear-drive S63 AMG that we don't get Stateside.